KeyCorp completes acquisition of HSBC branches in upstate New York

The HSBC banks on Niagara Falls Boulevard in the Town of Niagara and Center Street in Lewiston were converted into KeyBank branches over the weekend.

Deal strengthens upstate New York
franchise; provides customers with added convenience and access

Press release

KeyBank
has completed its acquisition of 37 retail banking branches owned by
HSBC Bank NA in Buffalo and Rochester. This transaction strengthens
Key's ability to provide exceptional service to consumer, business
banking and private banking clients in these markets while growing
its presence and acquiring new customers.

The
acquisition, which adds approximately $2.1 billion in deposits and
$260 million in loans, respectively (excluding approximately $70
million in credit card loans, which is scheduled to close in
September 2012), brings to 74 the number of branches in Key's
Western New York district and 26 in its Rochester district.

"We
are excited by the possibilities this transaction offers KeyBank and
our customers in this market," said Gary Quenneville, president,
KeyBank's Western New York district. "It enables Key to expand
the reach of our award-winning customer service, acquire new
customers and offer greater convenience to those we serve. We're
also proud to support the communities where we do business."

He
said that Key donates approximately $500,000 annually in actual and
in-kind services to support Buffalo-area charitable organizations and
approximately $200,000 annually to organizations in the Rochester
area.

"Acquiring
these branches enables Key to grow by acquiring customers and
expanding our branch network," noted Hugh Donlon, president,
northeast regional, Key Community Bank, which serves consumers, small
and medium-sized businesses. "Customers will enjoy the added
convenience of more banking locations, exceptional service and a
broad selection of products, all from a bank that is financially
strong and committed to these markets."

"KeyBank
has earned an enviable record for delivering an excellent customer
experience," Donlon added, "and we're looking forward to
providing our new customers with award-winning service." Learn more
about Key's nationally recognized
service acumen.

Under
the terms of the transaction, KeyBank paid 4.4 percent premium on
deposits, or approximately $95 million based on current deposit
balances. The assumed deposits consist primarily of transaction and
savings accounts. The purchased loans consist entirely of in-market
performing loans, primarily residential real estate loans. The
agreement excluded all commercial loans and deposits for clients with
annual revenue greater than $30 million.

HSBC
customers were mailed a welcome kit last month with all of the
information they need to transition to becoming a KeyBank customer.
For additional information and answers to frequently asked questions,
visit Key's dedicated conversion website athttps://www.key.com/about/welcome-hsbc-clients.jsp.

Key
offered employment to substantially all of the HSBC employees at the
acquired branches.